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Ripple's advantage and Bitcoin's lightning network?


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Hi there,

I am not so much into technology, please excuse if I miss something.

As I know it, in this moment, Ripple XRP's ledger has a huge advantage over Bitcoin, Ethereum and other coins out there when it comes to the amount of possible transactions per second.
Also, the cost of each transaction with XRP is way below the other coins, almost zero.

But can this be defended over time as Bitcoin is advancing it's lightning network? 
Or is this lightning network from Bitcoin more a dream than a functioning reality?

In this moment huge amounts of money are still flowing into Bitcoin and Ethereum.
Still, there tech seams to be out of date in many areas, compared to Ripple.

And, besides, nobody is really using Bitcoin or Ether for commerce.
And that should stay so for a very long time, I think, because almost everybody there is just holding for price gains,
and uses fiat for the real payments !

That will stay until the bubble breaks or the whole world will be consumed by Bitcoin (or Ether).

If it cannot take the whole world, Bitcoin/Ether would not be worth much as it is not used in commerce.

As I see it, with Ripple, it will likely be different, when banks HAVE to use XRPs  (so indirectly consumers also through using bank payments) when banks really want to save on
daily FX-transactions, as payments with the XRP ledger are likely to be the cheapest method.

So, what do you think?

Can Ripple hold it's technological advantage or will Bitcoin (or Ethereum) eventually catch up with lightning or something similar?

Thank you,

ZE

 

 

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  • Zockempire changed the title to Ripple's advantage and Bitcoin's lightning network?
Guest dfault123

It's all about who validates the transactions. My opinion is that PoW protocols are not direct competitors to RCL (and similar protocols). PoW protocols compete against each other in attempt to gain the hashing power.

There are also challenges in getting big players to use PoW, since It's going to be a tough task to get financial institutions to trust in a handful of fairly unknown & unregulated mining pools that can co-operate to control pretty much 100% of the tx flow. Got blacklisted by the cartel of mining pools? Tough luck.

We've also seen it can be painful to implement protocol upgrades, if miners lose any kind of profit from block rewards or tx fees because of them.

I believe these issues with PoW get more intense over time as protocols increase in popularity.

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1 hour ago, Zockempire said:

But can this be defended over time as Bitcoin is advancing it's lightning network? 
Or is this lightning network from Bitcoin more a dream than a functioning reality?

In this moment huge amounts of money are still flowing into Bitcoin and Ethereum.
Still, there tech seams to be out of date in many areas, compared to Ripple.

And, besides, nobody is really using Bitcoin or Ether for commerce.
And that should stay so for a very long time, I think, because almost everybody there is just holding for price gains,
and uses fiat for the real payments !

1. The Lightning network implies "off-blockchain" transactions that are then consolidated and communicated "on-blockchain."  It relies on Segregated Witness being enabled.  I don't know if it's going to be a success or not, but it will be something interesting to watch after Segwit.

NOTE the XRP Ledger already has its own "lightning" network, and it's ready to go right now.  It's called "Payment Channels" or "Paychan" for short.  It currently can process up to 70,000 transactions per second.  https://www.cryptocoinsnews.com/ripple-claims-transaction-thoroughput-now/

2.  Very few banks or FIs will use Bitcoin or Ether for commercial bank or FI uses because they will not have any liquidity to start with. 

No global network currently exists.  By contrast, Ripple has a war chest of XRP to bootstrap liquidity for its global payments network, and that's exactly what it's doing.  JoelKatz explains why Ether cannot compete because of this liquidity issue in this post: 

 

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Thank you. I did read also the explanation of JoelKatz. It makes sense, that the real first mover in cryptocurrency seems to be Ripple as it knows already how to take position in the real world.

For me, it is logical, that a cryptocurrency can only succeed in the long run, if it is used for a wide range of payments and not almost exclusively only for speculation. And that will be almost certainly be the case with ripple xrp, which will be used at last indirectly by the consumer through their payments with banks. 

More and more it seems to me, as if the smart money positions itself in ripple rather in ethereum or bitcoin. Also an impression, which I got from reading here on the forum. As it was written in another posting on the xrpchat-forum: "While bitcoin and ethereum are gaining media attention, ripple is gaining influence". 

Edited by Zockempire
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